Financial Sector (Collection of Data) (reporting standard) determination No. 26 of 2019
Section B: LiabilitiesSection B: Liabilities
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Personal: individuals, or groups of individuals whose dealings with other sectors are for personal (i.e. non-business) purposes.
Commercial: transactions conducted with Private trading companies, Public trading enterprises, Private unincorporated businesses, and Community service organisations, for use in connection with businesses carried on by them.
‘Parent entity’, ‘controlled entity’ (subsidiary), ‘associated entity’: these terms are defined in accordance with AASB 127, AASB 3 and AASB 128 Investments in Associates and Joint Ventures (AASB 128).
‘Related parties’: related parties of the reporting entity include the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.
Reporting entity
This is to be completed by all authorised deposit-taking institutions (ADIs) on a consolidated group basis (where applicable).
The basis of consolidation required in this form is in accordance with the accounting consolidated group. The accounting consolidated group is to be determined in accordance with the requirements of the Australian accounting standards, notably AASB 127 Separate Financial Statements (AASB 127) and AASB 3 Business Combinations (AASB 3).
ADIs that do not have any controlled entities are not required to submit forms for this reporting entity.
Branches of foreign banks are not required to complete this form.
Consolidated ADI group
This refers to the global operations of the ADI and all its controlled entities (where relevant), consolidated in accordance with Australian accounting standards (AASB 127 and AASB 3).
The terms ‘controlled entity’ and ‘parent entity’ are defined in accordance with AASB 127 and AASB 3.
Exclude from the accounting consolidated group special purpose vehicles (SPVs) whose assets have satisfied the clean sale requirements set out in Prudential Standard APS 120 Securitisation (APS 120) (refer to Securitisation Deconsolidation Principle below).
Securitisation deconsolidation principle
Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that meets APRA’s operational requirements for regulatory capital relief under Prudential Standard APS 120 Securitisation (APS 120):
(a) special purpose vehicles (SPVs) holding securitised assets may be treated as non-consolidated independent third parties for regulatory reporting purposes, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes; and
Part Section B: Liabilities - Financial Sector (Collection of Data) (reporting standard) determination No. 26 of 2019 - Section B: Liabilities | Zoe
(b) the assets, liabilities, revenues and expenses of the relevant SPVs may be excluded from the ADI’s reported amounts in APRA’s regulatory reporting returns.
Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA’s operational requirements for regulatory capital relief under APS 120, or the ADI undertakes a funding-only securitisation or synthetic securitisation, such assets are to be reported as on-balance sheet in APRA’s regulatory reporting returns.
Reporting period and timeframe for lodgement
The form is to be completed as at the last day of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI. ADIs must submit the completed form to APRA within 28 calendar days after the end of the relevant reporting quarter or by the date specified in a notice of extension granted by APRA.
Unit of measurement
ADIs are asked to complete the form in whole Australian dollars (no decimal place).
Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).
The general requirements of AASB 121 for translation are:
foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date;[1]
foreign currency non-monetary items that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction;[2]
foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 9 Financial Instruments (AASB 9), AASB 7 Financial Instruments: Disclosures (AASB 7) and AASB 132 Financial Instruments: Presentation. However, those foreign currency derivatives that are not within the scope of AASB 9 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For APRA purposes, equity items must be translated using the foreign currency exchange rate at the date of investment or acquisition. Post-acquisition changes in equity are required to be translated on the date of the movement.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange differences should be recognised in profit and loss in the period which they arise. For foreign currency derivatives, the exchange differences would be recognised immediately in profit and loss if the hedging instrument is a fair value hedge. For derivatives used in a cash flow hedge, the exchange differences should be recognised directly in equity.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss; and
in relation to financial reports of foreign operations:
A foreign operation is defined in AASB 121 to mean an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.
Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.
Translation of financial reports should otherwise follow the requirements in AASB 121.
Netting
Unless otherwise specifically stated, institutions are allowed to take advantage of netting agreements in relation to disclosure of data items in this form. Institutions are to comply with the prerequisite for netting outlined in Australian accounting standards AASB 7 and AASB 132 and any relevant prudential standards.
Term to maturity
Any references to ‘term to maturity’ in Reporting Form ARF 322.0 Statement of Financial Position (Consolidated) (ARF 322.0) refer to residual term to maturity.
Basis of preparation
The nature of the disclosure and format of this form may not be strictly consistent with the annual financial statements prepared by the institution. Notwithstanding this, in completing this form (unless otherwise specifically stated for individual items of assets, liabilities or equity), institutions are requested to follow the basis that is used for the preparation of its annual financial statements in accordance with the Australian Accounting Standards, specifically in regard to the:
interpretation/definition of specific asset, liability and equity items;
appropriate measurement basis for asset, liability and equity items; and
netting of financial assets and financial liabilities.
Classification schema
This information is provided as a reference guide for the disclosure of the loans and advances portfolios and deposit portfolios as required in ARF 322.0, it can be also be used as a general guide for other classifications in the form.
In defining sectors (refer to below), the following three broad classifications are used:
1. Private/public classification
Private: the private sector comprises private corporations, households and non-profit institutions serving households; and
Public: the public sector comprises government-controlled corporations, general government units and non-profit institutions controlled by government.
2. Level of Government classification
The level of Government classification is:
National/Central;
State/Territory; and
Local.
3. Resident/non-resident classification
An Australian resident is any individual, business or other organisation domiciled in Australia. Australian branches and Australian subsidiaries of foreign businesses are regarded as Australian residents.
A non-resident is any individual, business or other organisation domiciled overseas. Foreign branches and foreign subsidiaries of Australian businesses are regarded as non-residents.
Sector definitions
Households
This comprises individuals, or groups of individuals, resident in Australia whose dealings with other sectors are for personal or household purposes.
Exclude:
sole proprietors, partnerships, family trusts, and any other unincorporated enterprises owned by households. Show these as private unincorporated businesses.
Community service organisations
Include:
institutions financed mostly by members’ contributions, e.g. trade unions, professional societies, consumer associations, political parties, churches and religious societies, and social, cultural, recreational and sports clubs; and
charities and aid organisations financed by voluntary transfers.
Exclude:
community service organisations and non-profit institutions controlled and mainly financed by government (include in General Government).
Non-financial corporations
Private non-financial corporations
Private trading corporations
Private trading corporations are those owned and controlled by the private sector whose main activity is producing goods or non-financial services for sale.
Include:
all resident private corporate trading enterprises, and non-profit institutions that are market producers of goods or non-financial services;
intra-group financiers (Financial Sector (Collection of Data) Act 2001 Category I) and parent companies with significant holdings of shares in private trading companies;
privately owned schools and hospitals;
any unincorporated unit that is a branch in Australia of a non-resident company and which is not included in the financial sector; and
any unincorporated business owned and operated by trading corporations (e.g. joint ventures).
Exclude:
unincorporated businesses, except for branches of non-resident companies and joint ventures or partnerships owned by corporations; and
non-resident enterprises.
Private unincorporated businesses
This comprises individuals acting as sole proprietors or in partnerships, for commercial or professional purposes. The major businesses to be included in this sub-sector are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradesmen such as plumbers, carpenters, etc.
Public non-financial corporations
Commonwealth Government
Trading enterprises owned by the Commonwealth are those businesses which are owned and controlled by the Australian Commonwealth Government and which produce goods or non-financial services for sale at market prices.
Include:
All resident trading enterprises owned 50% or more by the Commonwealth Government or controlled by the Commonwealth Government through legislation, decree or regulation (e.g. Australia Post and Australian Government Solicitor).
Exclude:
government departments (show as Commonwealth General Government); and
government-owned financial institutions (these are classified as financial institutions).
State, Territory and local government
State, Territory and local government trading enterprises are those businesses, which are owned and controlled by State, Territory or local governments, which produce goods or non-financial services for sale at market prices.
Include:
All resident trading enterprises 50% or more owned by a State, Territory or local government or controlled by a State or Territory government, through legislation, decree or regulation (e.g. state rail and water authorities, gas and fuel authorities, housing commissions, port authorities, non-privatised power authorities).
Exclude:
State government owned financial institutions and entities in the general government; and
State and Territory central borrowing authorities.
General Government
Commonwealth General Government
Australian Commonwealth Government departments and agencies’ principal function is to provide non-market goods and services, principally financed by taxes, to regulate economic activity, maintain law and order and to redistribute income and wealth by means of transfers.
Include:
departments and agencies such as Department of Finance, Department of Defence, ABC, SBS, Australian Film Commission and CSIRO;
Commonwealth government unincorporated enterprises which provide goods and services to the Australian Commonwealth Government and/or to the public for free or at prices that are not economically significant (e.g. government employee cafeterias, munitions factories);
non-profit institutions controlled and mainly financed by the Commonwealth government;
Commonwealth Government quasi-corporations which sell their output, at near market prices, exclusively to other government units (e.g. government printers and defence force housing schemes); and
public universities.
Exclude:
government trading enterprises such as Australia Post (record as Trading enterprises owned by the Commonwealth Government); and
departments of the ACT and Northern Territory Governments (record as State, Territory and local general government); and
Reserve Bank of Australia (RBA) and Commonwealth Government financial institutions such as Export Finance and Insurance Corporation (EFIC) (record as financial institutions as appropriate).
State, Territory and local general government
State, Territory and local general government provide non-market goods and services principally financed by taxes to regulate economic activity, maintain law and order and to redistribute income and wealth by means of transfers and hence provided free of charge or at nominal prices well below the cost of production.
Include:
State and local government unincorporated enterprises which provide goods and services to their government and/or to the public for free or at prices that are not economically significant (e.g. government employee cafeterias, municipal swimming pools);
non-profit institutions controlled and mainly financed by State and local government;
State government quasi-corporations which sell their output, at near market prices, exclusively to other government units (e.g. government printers);
ACT and Northern Territory Government departments and agencies; and
state schools, technical and further education colleges and state owned hospitals.
Exclude:
all State and local government trading enterprises and financial enterprises (e.g. rail, and municipal water authorities); and
State and Territory central borrowing authorities.
Financial corporations
RBA
The RBA is a public financial corporation and has responsibility for monetary policy, issuing banknotes, holding Australia’s international reserves and providing banking services to the Commonwealth.
Other central bank institutions
This sub-sector includes APRA.
Depository corporations
ADIs
ADIs refers to corporations, in relation to which an authority under subsection 9(3) of the Banking Act 1959 is in force.
Include:
development banks; and
foreign banks licensed to operate in Australia under the Banking Act 1959.
Exclude:
merchant banks (record as non-bank financial intermediaries); and
non-resident banks (report as non-resident counterparties).
Registered Financial Corporations (RFCs)
RFCs refers to corporations registered under the Financial Sector (Collection of Data) Act 2001 that are classified as Categories D and Other and cash management trusts.
Include:
money market corporations (also referred to as ‘merchant banks’) (D);
pastoral finance companies, finance companies and general financiers (other); and
cash management trusts.
A list of corporations registered under the Financial Sector (Collection of Data) Act 2001 and their classification are available on request.
Exclude:
intra group financiers registered under the Financial Sector (Collection of Data) Act 2001 Category I (record as private trading corporations).
Life insurance
Life insurance companies must be registered with APRA. They offer insurance for death or disability and also offer investment and superannuation products.
Include:
benefit fund friendly societies that are regulated under the Life Insurance Act 1995.
Exclude:
insurance companies offering house, car and marine insurance (these are general insurance companies); and
health benefit funds of friendly societies that are regulated under the National Health Act 1959.
Pension funds
The pension funds sub-sector includes all superannuation funds that are regarded as complying funds for the purposes of the Superannuation Industry (Supervision) Act 1993 and other autonomous funds established for the benefit of public sector employees. Superannuation funds with all of their assets invested with insurance offices are included.
Superannuation funds and Approved Deposit Funds (ADFs) are established to provide benefits for their members on retirement, resignation, death or disablement. Superannuation funds and ADFs usually take the legal form of trust funds.
Include:
Pooled Superannuation Trusts;
public sector superannuation funds (including SIS-exempt funds);
private sector superannuation funds;
ADFs; and
superannuation funds established by life insurance companies.
Exclude:
retirement savings accounts.
Other insurance corporations
The other insurance corporations sub-sector includes all corporations that provide insurance other than life insurance. Included are general, fire, accident, employer liability, household and consumer credit insurers and health insurance funds. These companies must be registered with APRA. They mainly offer house, car and marine insurance.
Include:
EFIC; and
private sector and government-owned general and health insurance enterprises, both proprietary and mutual.
Central borrowing authorities (CBAs)
These are corporations established by State and Territory governments to provide finance for government authorities and to manage their surplus funds.
Include:
New South Wales Treasury Corporation (NSW TCorp);
Treasury Corporation of Victoria (TCV);
Queensland Treasury Corporation (QTC);
South Australian Government Financing Authority (SAFA);
Western Australian Treasury Corporation (WATC);
Tasmanian Public Finance Corporation (Tas Corp);
Northern Territory Treasury Corporation (NT TCorp); and
ACT Treasury
Other financial institutions
Financial auxiliaries
These are corporations and quasi-corporations engaged primarily in activities closely related to financial intermediation, but which do not themselves perform an intermediation role.
Include:
fund managers as principal;
stockbrokers; and
insurance brokers.
Exclude:
non-resident enterprises.
Financial intermediaries
Securitisers
These are financial vehicles that issue short and/or long-term securities (called asset-backed securities) using specifically selected assets (e.g. mortgages, receivables). They provide backing (collateral) for the securities and generate the payment streams necessary to fulfil interest and principal requirements for investors.
Unit trusts
Include:
mortgage, fixed interest and equity unit trusts.
Exclude:
cash management trusts. These are to be included in RFCs;
property and trading trusts, include in private trading corporations; and
non-resident enterprises.
Other financial intermediaries
Comprise all financial intermediaries other than central bank institutions, depository corporations, insurance corporations, pension funds, CBAs, securitisers and unit trusts.
Include:
economic development corporations owned by governments;
co-operative housing societies;
investment companies; and
common funds including cash common funds.
Exclude:
non-resident enterprises.
Rest of the world/non-residents
The rest of the world sector consists of all non-resident units that enter into transactions, or have other economic links, with Australian resident units. The concept of residence is one based on the economic territory of a country rather than legal or political concepts. A non-resident unit is any individual, enterprise or other organisation ordinarily domiciled in a country other than Australia.
Include:
foreign branches and foreign subsidiaries of Australian enterprises; and
residents of Norfolk Island and other external territories of Australia.
Exclude:
Australian branches or subsidiaries of an overseas company.
Specific instructions
Section A: Assets
1. Cash and liquid assets
Generally include:
Australian notes and coin;
foreign currency;
cash at branches;
cash at bankers;
deposits at call;
money at short call;
exchange settlement accounts;
securities purchased under agreement to resell;
margin deposit accounts; and
gold bullion.
Exclude:
bills of exchange (reported as either Securities held for trading or Securities not held for trading);
bills receivable and remittances in transit; and
cheques received but not yet deposited.
This reporting item should be brought to account at the face value or the gross value of the outstanding balance where appropriate. Interest is taken to profit and loss when earned.
1.1 Notes and coins
Include Australian and foreign currency notes and coins of the reporting entity. Notes and coins in transit between any branches or offices of the reporting entity should be reported.
1.2 Deposits at call:
Include:
all deposits with Australian resident ADIs that are available on demand. Report 11am accounts and 24-hour money.
all deposits with RFCs that are available on demand. Report 11am accounts and 24-hour money.
all deposits with other financial institutions resident in Australia that are available on demand. Report 11am accounts and 24-hour money.
Exclude:
exchange settlement accounts.
1.3 Gold bullion
Include:
gold coin;
gold bullion held in Australia and elsewhere; and
gold certificates held as investments.
Exclude:
loans repayable in gold bullion.
1.4 Due from clearing houses
Include:
net claims on recognised clearing houses in Australia such as the Australian Stock Exchange Clearing House (ASXCH) and Sydney Futures Exchange Clearing House (SFXCH).
1.5 Securities purchased under agreements to resell
Treatment is to be consistent with AASB 9.
Where the transferee of the stock effectively receives a lender’s rate of return (i.e. the underlying risks and rewards of ownership of the underlying stock is not effectively transferred), these transactions are to be accounted for as collateralised borrowing activities (treating stock borrowing as on balance sheet exposures). Securities purchased under agreements to resell, represents the receivable due from counterparties from whom the stock has been borrowed and with whom cash has been lodged. Under this method of accounting the bank’s physical stock positions recorded on the balance sheet in either securities held for trading or securities not held for trading sections is not affected.
1.6 Due from financial institutions
Generally include:
settlement account balances – Austraclear and the Reserve Bank Information and Transfer System (RITS) balances with Australian ADIs and non-bank financial institutions;
amounts owing from Australian ADIs and other financial institutions in relation to the payments system;
items in the course of collection from Australian ADIs and other financial institutions in relation to the payments system; and
margin deposit accounts with brokers.
Exclude:
certificates of deposits. These items should be reported as short-term debt securities in either the Securities held for trading or Securities not held for trading category.
This reporting item should be brought to account at the gross value of the outstanding balance. Interest is taken to profit and loss when earned.
1.7 Total cash and liquid assets
Sum all cash and liquid assets reporting items above, due from residents.
2. Securities held for Trading
Securities held for trading are defined in accordance with AASB 9.
Securities held for trading are recorded at net fair value, which is defined in accordance with AASB 9.
Interest earned on securities held for trading is reported as interest income in the ADI Statement of Financial Performance. ARF 330.1 Interest Income and Interest Expense (ARF 330.1). Dividends received are viewed as dividend income and accordingly, are to be classified as other operating income in ARF 330.2 Other Operating Income (ARF 330.2).
All gains and losses, realised and unrealised are reported in net trading income in ARF 330.2.
Report short sold positions as a negative asset against the appropriate debt or equity security item.
Include:
all securities (stock) lent or sold under repurchase agreements. The payable due to counterparties with whom the stock has been lent or sold and from whom cash has been lodged is recorded in Securities sold under agreements to repurchase.
holdings of debt securities issued by related parties that are resident entities (claims on non-resident related parties should be reported to the appropriate memo item)
Exclude:
all securities borrowed or purchased under resale agreements. The receivable due from counterparties from whom the stock has been borrowed or purchased and with whom cash has been lodged is recorded in Securities purchased under agreements to resell.
‘Loans and advances’ should not be affected by the reporting of ‘Securities lent or sold under repurchase agreements’.
2.1 Australian Commonwealth Government securities
Include:
debt securities issued by the Australian Commonwealth government. Do not include securities issued by Government business enterprises.
2.2 Other Australian Government securities
Include:
debt securities issued by Australian State and Territory governments and Australian State and Territory central borrowing authorities. Do not include securities issued by Australian State and Territory government business enterprises.
2.3 Foreign government securities
2.4 ADI debt securities
Include:
debt securities that have been issued by ADIs (e.g. negotiable certificates of deposits, transferable certificates of deposits, medium term notes, debentures, unsecured notes).
2.5 Corporate debt paper
Include:
debt securities that have been issued by corporate entities other than ADIs.
2.6 Asset backed debt securities
An asset-backed security is a debt security that is secured or supported by a pool of assets. These forms of securities are usually issued by a SPV.
2.7 Other debt securities
2.8 Equity securities
Include:
all equity securities held for trading consistent with the classification and measurement basis used for Securities held for trading by institutions in accordance with AASB 7.
2.9 Total securities held for trading
Sum all ‘securities held for trading’ reporting items.
3. Securities not held for trading
Securities not held for trading are those securities, which do not fall within the definition of ‘Securities held for trading’ (as defined in accordance with AASB 7). These are generally securities purchased with the intent that they be generally held to maturity or held for a period of time, though not necessarily maturity (i.e. equity securities where it is not technically possible to hold to maturity).
The ADI’s strategic investment in the equity securities of entities that are deemed to be controlled entities, associates or joint ventures, defined in accordance with AASB 127, AASB 3 and AASB 128, are to be disclosed in ‘Other Investments’ in ARF 322.0.
Securities not held for trading are to be recorded in accordance with AASB 9.
Interest earned on securities not held for trading is reported as Interest Income in ARF 330.1.
Dividends received on equity securities are viewed as dividend income and accordingly, are to be classified as Other Operating Income in ARF 330.2.
All realised gains and losses are reported in ARF 330.2.
Include:
all securities (stock) lent or sold under repurchase agreements. The payable due to counterparties with whom the stock has been lent or sold and from whom cash has been lodged is recorded in Securities sold under agreements to repurchase.
holdings of debt securities issued by related parties that are resident entities.
Exclude:
All securities borrowed or purchased under resale agreements. The receivable due from counterparties from whom the stock has been borrowed or purchased and with whom cash has been lodged is recorded in Securities purchased under agreements to resell.
3.1 Australian Commonwealth Government securities
Include:
debt securities issued by the Australian Commonwealth Government. Do not include securities issued by government business enterprises.
3.2 Other Australian Government securities
Include:
debt securities issued by Australian State and Territory governments and Australian State and Territory central borrowing authorities. Do not include securities issued by Australian State and Territory government business enterprises.
3.3 Foreign government securities
3.4 ADI debt securities
Include:
debt securities that have been issued by ADIs (e.g. negotiable certificates of deposits, transferable certificates of deposits, medium term notes, debentures; unsecured notes).
3.5 Corporate debt paper
Include:
debt securities that have been issued by corporate entities other than ADIs.
3.6 Asset backed debt securities
An asset-backed security is a debt security that is secured or supported by a pool of assets. These forms of securities are usually issued by a SPV.
3.7 Other debt securities
Equity securities
Include:
all equity securities consistent with the classification used for Securities not held for trading by institutions.
3.8 ADI equity securities
Record the holding of equity securities issued by ADIs that are held as Securities not held for trading.
Exclude:
equity investments in ‘Parent Entity’ or ‘Controlled Entities’ or ‘Associates’. These investments are to be reported in the classification ‘Other Investments’.
3.9 Insurance corporations equity securities
Record the holding of equity securities issued by insurance corporations that are held as Securities not held for trading.
Exclude:
equity investments in ‘Parent Entity’, ‘Controlled Entities’ or ‘Associates’. These investments are to be reported in the classification ‘Other Investments’.
3.10 Other equity securities
Record the holding of equity securities issued by corporations other than ADIs and insurance corporations that are held in the Securities not held for trading.
Exclude:
equity investments in ‘Parent Entity’, ‘Controlled Entities’ or ‘Associates’. These investments are to be reported in the classification ‘Other Investments’.
3.11 Total securities not held for trading
Sum all ‘Securities not held for trading’ reporting items.
4. Other deposits
Include:
deposits that are not invested on a call or short term basis i.e. term deposits that are not on a call/demand basis. Disclose total deposits invested with the following counterparty classifications.
4.1 ADIs
4.2 Other
4.3 Total other deposits
5. Net Acceptances of Customers
Acceptances comprise undertakings by an ADI to pay bills of exchange drawn on customers. These bills of exchange are not held as part of the ADI’s asset portfolio. Acceptances are accounted for and disclosed as a liability with a corresponding contra asset. The contra asset is recognised to reflect the ADI’s claim against each drawer of the bills of exchange.
Bills of exchange that have been accepted and held in an ADI’s asset portfolio should be excluded from this item. Include these holdings of own acceptances under either securities held for trading or securities not held for trading.
Netting is allowed in accordance with the requirements specified in the Australian accounting standards (i.e. only if there is a legal right to set off and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously).
Acceptances generate fee income that is taken to profit and loss when earned.
6. Loans and advances
Note: Loans and advances are investments of the ADI, which are deemed for this form not to be evidenced by the financing/issue of debt securities (e.g. bill financing). This type of financing/investing is to be either recorded in the Securities held for trading or Securities not held for trading.
Generally include:
overdrafts;
secured and unsecured lending;
financial lease agreements;
account balances which do not qualify as deposits;
credit card outstanding balances;
term loans;
mortgage lending;
commercial loans;
equity participation in leveraged leases;
redeemable preference share finance; and
subordinated loans.
Exclude:
bills of exchange, commercial paper and promissory notes (report as Securities held for trading or Securities not held for trading);
bills of exchange both discounted and held notes (report as Securities held for trading or Securities not held for trading);
bonds, debentures, medium term notes (MTNs), transferable certificates of deposit (TCDs), floating-rate notes (FRNs) (show as Securities held for trading or Securities not held for trading);
FRNs (show as Securities held for trading or Securities not held for trading);
account balances with financial intermediaries such as ADIs (show as deposits or due from other financial institutions); and
receivables due from counterparties arising from the first leg of a repurchase agreement. This receivable should be reported to Securities purchased under agreements to resell.
Loans and advances are recognised at amortised cost, after assessing required provisions.
Loans and advances should be recorded net of unearned revenue; this is mainly with respect to unearned lease receivables.
Netting is permitted in accordance with the requirements of the Australian accounting standards (i.e. where there is a legal right to set off the recognised amounts and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously).
Loan loss provisioning
Provisions assessed on an individual facility basis in accordance with the Australian equivalents to International Financial Reporting Standards[3] (IFRS) are to be treated as specific provisions in the reporting forms for regulatory reporting purposes APS 220 Credit Quality (APS 220). Specific provisions also include that portion of provisions assessed on a collective basis that are not eligible for regulatory purposes to be included in General Reserve for Credit Losses as defined by APS 220.
Note: Specific provisions and General Reserve for Credit Losses for products and counterparties where indicated in the form are to be reported only if the data is already recorded and allocated on that basis by the institution. Otherwise the specific provision and General Reserve for Credit Losses can be disclosed in aggregate.
Do not include associated deferred tax assets (DTA) in the amounts reported for General Reserve for Credit Losses or specific provisions. Include associated DTA in 'Other Assets - DTA - General Reserve for Credit Losses'.
Loans and Advances
6.1 Revolving credit – Balance Outstanding (1)
Include:
the gross value of loans of a revolving credit nature to, for a purpose other than housing.
Revolving credit is a loan arrangement in which the borrowing party may repay funds on loan and immediately borrow it again up to an agreed limit.
This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.
6.1 Revolving credit – Specific provision (2)
Report the specific provisions for impairment applied to this loan item, if this is recorded or allocated by the institution on this basis.
6.1 Revolving credit – General Reserve for Credit Losses (3)
Report the General Reserve for Credit Losses for this reporting line, if this is recorded or allocated by the institution on this basis.
6.2 Credit cards – Balance Outstanding (1)
Include:
the gross value of credit card liabilities.
This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.
6.2 Credit cards – Specific provisions (2)
Report the specific provisions for impairment applied to this loan item, if this is recorded or allocated by the institution on this basis.
6.2 Credit cards – General Reserve for Credit Losses (3)
Report the General Reserve for Credit Losses for this reporting line, if this is recorded or allocated by the institution on this basis.
the value of fixed rate housing loans, for the construction or purchase of dwellings for non-owner occupation; and
revolving credit or redraw facilities originally approved for a purpose of predominantly non-owner occupied housing.
This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.
6.4 Housing – fixed rate – Specific provisions (2)
Report the specific provisions for impairment applied to this loan item.
6.4 Housing – fixed rate – General Reserve for Credit Losses (3)
Report the General Reserve for Credit Losses applied to this loan item if already recorded/allocated by the institution, otherwise leave blank.
6.5 Term loans – variable rate – Balance outstanding (1)
Include:
the gross value of variable rate term loans for purposes other than housing and other than revolving credit, credit card and lease financing.
This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.
6.5 Term loans – variable rate – Specific provisions (2)
Report the specific provisions for impairment applied to this loan item, if recorded or allocated by the institution on this basis.
6.5 Term loans – variable rate – General Reserve for Credit Losses (3)
Report the General Reserve for Credit Losses for this reporting line, if recorded or allocated by the institution on this basis.
6.6 Term loans – fixed rate – Balance outstanding (1)
Include:
the gross value of fixed rate term loans for purposes other than housing and other than revolving credit, credit card and lease financing.
This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.
6.6 Term loans – fixed rate – Specific provisions (2)
Report the specific provisions for impairment applied to this loan item, if recorded or allocated by the institution on this basis.
6.6 Term loans – fixed rate – General Reserve for Credit Losses (3)
Report the General Reserve for Credit Losses for this reporting line, if recorded or allocated by the institution on this basis.
6.7 Lease financing – Balance outstanding (1)
Include:
the gross value of lease financing.
This reporting item should be reported net of unearned revenue and gross of specific provisions for impairment and General Reserve for Credit Losses.
6.7 Lease financing - Specific provisions (2)
Report the specific provisions for impairment applied to this loan item, if this is recorded or allocated by the institution on this basis.
6.7 Lease financing – General Reserve for Credit Losses (3)
Report the General Reserve for Credit Losses for this reporting line, if recorded or allocated by the institution on this basis.
6.8 Other loans and advances – Balance outstanding (1)
This reporting item should be reported net of unearned revenue and gross of specific provisions for impairment and General Reserve for Credit Losses.
6.8 Other loans and advances - Specific provisions (2)
Report the specific provisions for impairment applied to this loan item, if this is recorded or allocated by the institution on this basis.
6.8 Other loans and advances – General Reserve for Credit Losses (3)
Report the General Reserve for Credit Losses for this reporting line, if recorded or allocated by the institution on this basis.
6.9 Total loans and advances – Balance outstanding (1)
Sum the gross value of loans and advances.
6.9 Total loans and advances – Specific provision (2)
Record the specific provisions for impairment applying to all loans.
6.9 Total loans and advances – General Reserve for Credit Losses (3)
Record the General Reserve for Credit Losses applying to all loans.
6.10 Less: Deferred fee income
Deferred fee income should be reported in this line item and deducted from Total gross loans and advances.
6.11 Total net loans and advances (net of specific provision, general reserve for credit losses and deferred fee income)
Subtract ‘General Reserve for Credit Losses’, and ‘specific provisions’ and ‘Deferred Fee Income’ from ‘total gross loans and advances’.
6.11.1 of which: Loans to associates/joint ventures
6.11.2 of which: Loans held at fair value
Record loans held at fair value in accordance with AASB 9.
7. Investments relating to Life Insurance Business
7.1 Total investments relating to life insurance business
7.1.1 Of which: Excess of net market values of the investment in life insurance subsidiaries over recognised net assets of subsidiary
8. Other investments
8.1 Investment in parent entity (where not part of consolidated group)
Report the total amount of equity investments in the parent entity. Defined in accordance with AASB 127 and AASB 3.
8.2 Investment in associates
Report the total amount of equity investments in associates. Defined in accordance with AASB 128.
8.3 Interest in joint ventures
Report the total amount of interests in joint ventures (entities).
8.4 Equity investments in former Special Service Providers (SSPs)
Report the total value of shareholdings in former SSPs and is to be completed by ADIs that have affiliations with SSPs.
8.5 Other
Report any other investments not included above.
8.6 Total other investments
Sum all reporting line items for ‘Other Investments’.
9. Fixed assets
The reporting of all fixed asset items should be in accordance with applicable Australian accounting standards. Do not include property acquired or held available for sale. These assets are to be disclosed in ‘Other Assets’ category under line item ‘Non-current assets and disposal groups classified as held for sale’.
9.1 Property
Include:
property (owner-occupied and investment) consistent with the classification and measurement basis used in AASB 116 Property, Plant and Equipment (AASB 116) and AASB 140 Investment Property (AASB 140).
9.2 Plant and equipment
Include:
furniture, equipment (excluding ‘Information technology’), re-modelling costs to existing premises, and interest capitalised during the period of construction of buildings in accordance with AASB 116.
9.3 Less: Accumulated depreciation/impairment - Property, plant and equipment
Report total depreciation and impairment for all property, plant and equipment items.
9.4 Property, plant and equipment net of accumulated depreciation /impairment
Deduct ‘Accumulated depreciation/impairment’ from the gross values for ‘Property’ and ‘Plant and equipment’.
9.5 Information technology
Where information technology is treated as an intangible asset for accounting purposes, it must be reported as an intangible asset in this regulatory form.
9.5.1 Work in progress (WIP):
9.5.1.1 Hardware and software application costs
Include:
the cost of hardware and software purchased from third parties not yet in use i.e. material costs.
9.5.1.2 Development and other on costs
Include:
software development, hardware installation costs and associated overheads that are carried out internally not yet in use i.e. labour and overhead costs.
9.5.1.3 Total WIP
Sum of line items hardware and software application costs and development and other on costs.
9.5.2 In use:
9.5.2.1 Hardware and software application costs
Include:
the cost of hardware and software purchased from third parties in use i.e. material costs.
9.5.2.2 Development and other on costs
Include:
software development, hardware installation costs and associated overheads that are carried out internally which are in use i.e. labour and overhead costs.
9.5.2.3 Total in use
Sum of line items hardware and software application costs and Development and other on costs.
9.5.3 Other information technology
Report other information technology expenditure which is not separately reported above.
9.5.4 Total information technology
Report total gross value of Information technology WIP and in use here.
9.6 Less: Accumulated depreciation/impairment - Information technology
Report accumulated depreciation/impairment in total for all Information technology assets.
9.7 Total information technology net of accumulated depreciation/impairment
Subtract ‘Accumulated depreciation/impairment - Information technology’ from ‘Total information technology (WIP plus In Use plus Other information technology)’.
9.8 Other
Report other fixed asset items not specifically mentioned above; e.g. leasehold improvements and capital leases.
9.9 Less: Accumulated depreciation
Report accumulated depreciation/impairment relating to other fixed assets.
9.10 Total other net of accumulated depreciation/impairment
Subtract ‘Less: Accumulated depreciation’ from ‘Other’.
9.11 Net fixed assets
Deduct accumulated depreciation/impairment from the gross values for property, plant and equipment, information technology and other.
10. Intangible assets
Intangible assets have been divided into ‘intangible assets with a finite life’ and ‘intangible assets with an infinite life’ and ‘goodwill’.
Classification of assets as intangible assets must be in compliance with the Australian Accounting Standards. As a guide, ADIs are suggested to follow the disclosure adopted in its annual financial report.
10.1 Intangible assets with a finite life
Include:
total intangible assets with a finite life.
10.2 Less: Accumulated amortisation
Include:
the total amount of amortisation of intangible assets, over the period from the date of acquisition to the end of the reporting period.
10.3 Net intangible assets with a finite life
Subtract the ‘accumulated amortisation’ from the ‘intangible assets with a finite life’.
10.4 Intangible assets with an infinite life
Include:
total intangible assets with an infinite life.
10.5 Less: Impairment
Include:
the total amount of impairment of intangible assets over the period from the date of acquisition to the end of the reporting period.
10.6 Net intangible assets with an infinite life
Subtract the ‘Impairment’ from the ‘Intangible assets with an infinite life’.
10.7 Goodwill
Goodwill (determined in accordance with AASB 3) represents the excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities.
10.8 Less: Impairment
Include:
the total amount of impairment over the period from the date of acquisition to the end of the reporting period.
10.9 Net goodwill
Include:
the net amount of goodwill after impairment.
10.10 Net intangible assets
Deduct accumulated amortisation and impairment from the gross values for intangible assets with a finite life, intangible assets with an infinite life and goodwill.
11. Other assets
11.1 Interest receivable
Include:
interest accrued for but not yet received.
11.2 General insurance premiums and other receivables
11.3 Deferred acquisition costs – general insurance policies
11.4 Capitalised debt raising/funding costs
Report costs associated with debt raisings and other similar transaction related costs.
11.5 Capitalised costs associated with establishing/setting up securitisation vehicles/programs
Report the balance of securitisation establishment costs that are capitalised and deferred.
11.6 Capitalised loan and lease origination fees and commissions paid to mortgage originators and brokers
Report origination fees and commissions deferred.
11.7 Other capitalised expenses of a general nature
Report any other capitalised expenses not reported above.
11.8 Derivative financial instruments
Include:
all derivatives entered into after adoption of International Financial Reporting Standards (IFRS) consistent with the classification and measurement basis used for derivatives by institutions in accordance with AASB 132, AASB 7 and AASB 9. This applies to trading and banking book derivatives. Derivative financial instruments in existence prior to adoption of IFRS are to be reported in accordance with AASB 1 First-time Adoption of Australian Accounting Standards (AASB 1).
11.8.1 Trading book derivatives
11.8.2 Banking book derivatives
11.9 Amounts receivable from clients – Outstanding security settlements
For those institutions that have broking activity (i.e. equity broking) with clients who are other than financial institutions, record the amount due from clients in relation to security settlement transactions. Do not include amounts receivable from financial institutions or clearing houses in relation to security settlements, as these are to be recorded in a separate asset heading ‘Due from Financial Institutions’ and ‘Due from Clearing Houses’.
11.10 Deferred tax assets
Tax assets are defined in accordance with AASB 112 Income Taxes (AASB 112).
Recognition of DTA are to be made in accordance with AASB 112.
The amounts calculated and recognised for DTA must be noted separately in the following categories:
11.10.1 From tax losses
Report all DTA arising out of tax losses in accordance with AASB 112.
11.10.2 From specific provision and General Reserve for Credit Losses
Report all DTA associated with the provisioning for asset impairment in accordance with AASB 112.
11.10.3 Other
Report all DTA other than from tax losses, specific provision and general reserve for credit losses.
11.11 Loan/credit card servicing rights
Report the carrying value of purchased loan (e.g. mortgages) and credit card relationships when the reporting entity purchases the right to receive existing loan payments and credit card receivables in consideration for providing lending and credit card services to those customers. Also report any purchased loan/credit card servicing rights arising in the acquisition of an entire financial institution. The carrying value consists of the cost of the servicing right less accumulated amortisation for the right.
11.12 Defined benefit assets
Include:
defined benefit assets i.e. surplus consistent with the classification and measurement basis used in AASB 119 Employee Benefits (AASB 119).
11.13 Non-current assets and disposal groups classified as held for sale
Include:
non-current assets and disposal groups classified as held for sale consistent with classification and measurement basis used in AASB 5 Non-current Assets Held for Sale and Discontinued Operations (AASB 5).
11.14 Items in suspense
Report suspense or unreconciled/unidentified transactions/balances here. A list of examples is not provided as these may vary between institutions. It is recommended that the institution’s internal procedures be adopted regarding the recording and reporting of these types of balances.
11.15 Other
Include all other assets not separately identified above.
For example, include:
commodities other than gold bullion;
valuables;
artwork;
other receivables (e.g. fees and commissions receivable); and
prepayments.
Exclude:
deposits, loans and other claims on related parties that are resident entities (claims on non-resident related parties should be reported to the appropriate memo item). These claims should be reported to the relevant item above.
11.16 Total other assets
Sum all the reporting items listed under ‘Other assets’.
12. Total assets
Sum total assets including Australian dollar denominated assets and foreign currency denominated assets.
12.1 Of which: Due from associated entities/joint ventures
Section B: Liabilities
1. Due to clearing houses
Include:
amounts due to recognised clearing houses such as the ASXCH and SFXCH in Australia. Include margin calls from stock and derivative exchanges which are payable.
2. Due to financial institutions
2.1 Total due to financial institutions
Include:
settlement account balances – Austraclear, and RITS balances with Australian banks and non-bank financial institutions;
amounts owing to Australian banks and other financial institutions in relation to the payments system; and
items in the course of collection – due to Australian banks and other financial institutions in relation to the payments system.
settlement account balances due to the RBA. Funds borrowed from the RBA should also be reported in this data item.
settlement account balances due to Australian ADIs.
settlement account balances due to RFCs.
settlement account balances due to other Australian financial institutions.
This reporting item should be brought to account at the gross value of the outstanding balance. Interest is taken to profit and loss when earned.
3. Acceptances
Acceptances comprise undertakings by an ADI to pay bills of exchange drawn on customers. The ADI expects most acceptances to be presented before being reimbursed by the customers. These bills of exchange are not held as part of the ADI’s asset portfolio. Acceptances are accounted for and disclosed as a liability with a corresponding contra asset. The contra asset is recognised to reflect the ADI’s claim against each drawer of the bills of exchange.
Bills of exchange that have been accepted and held in an ADI’s asset portfolio should be excluded from this item. Include these holdings of own acceptances under either securities held for trading or securities not held for trading.
Netting is allowed in accordance with the requirements specified in the Australian accounting standards (i.e. only if there is a legal right to set off and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously).
Acceptances generate fee income that is taken to profit and loss when earned.
4. Deposits
4.1 Call/on demand
Include the following:
Cheque
Accounts which provide checking facilities of any kind. This account can either be interest bearing or non-interest bearing. This account may be linked with other accounts offering transaction or non-transaction facilities. Do not include accounts which have a cheque facility but a cheque book has never been issued.
Other payment methods
Accounts from which payments may be made to third parties – Automated Teller Machines (ATMs), debit card or another electronic device.
All deposits are to be reported net off any setoffs (only if in accordance with AASB 132, AASB 7 and AASB 9).
notice of withdrawal account
A written notice required before funds can be withdrawn or transferred out of the account;
demand deposits;
savings deposits;
money market deposit accounts on a call/demand basis;
other savings deposits on a call/demand basis; and
11am accounts and 24-hour money.
Exclude from this classification:
negotiable and transferable certificates of deposit;
subordinated debt issues;
subordinated loans;
loans due to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity;
securities sold under agreements to repurchase;
treasury related short-term borrowings from other ADIs; and
promissory notes.
4.2 Term deposits
An account in which money has be placed for a fixed period for a stated interest rate.
4.3 Certificates of deposit
Certificates of deposit are negotiable bearer debt securities. They are issued at a discount to the face value and do not require endorsement when sold.
4.4 Other
Record in aggregate all other forms of deposits that are not included in the deposit account classifications noted above.
4.5 Total deposits
Sum the total of ‘Call/on demand’, ‘Term deposits’, ‘Certificates of deposit’ and ‘Other’.
5. Other borrowings
Include:
securities sold under agreements to repurchase;
subordinated loans with a residual maturity of 12 months or less;
short-term loans due to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity;
treasury related short-term borrowings from other ADIs;
promissory notes with a residual maturity of 12 months or less;
commercial paper with a residual maturity of 12 months or less; and
short-term debt securities from the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.
Exclude:
negotiable and transferable certificates of deposits;
subordinated loans, promissory notes, commercial paper with a residual maturity greater than 12 months; and
deposits.
5.1 Securities sold under agreements to repurchase
These transactions are to be recorded consistently with AASB 9. Where the transferee of the stock effectively receives a lender’s rate of return (i.e. the underlying risks and rewards of ownership of the underlying stock is not effectively transferred), these transactions are to be accounted for as collateralised lending activities (treating stock lending as on balance sheet exposures). Securities sold under agreements to repurchase, represents the payable due to counterparties with whom the stock has been lent and from whom cash has been lodged. Under this method of accounting the bank’s physical stock positions recorded on the balance sheet in either Securities held for trading or Securities not held for trading sections is not affected.
5.2 Promissory notes/commercial paper
Report all borrowings by the reporting entity in the form of commercial paper or promissory notes. Commercial paper or promissory notes are short-term debt securities usually issued with an original term to maturity of less than 180 days.
Include:
all commercial paper or promissory notes issued with a residual term to maturity of 12 months or less. Commercial paper or promissory notes with a residual maturity greater than 12 months should be reported as ‘long-term borrowings’.
5.3 Short-term loans
Report all borrowings by the reporting entity in the form of short-term debt securities, other than certificates of deposits and promissory notes/commercial paper (identified above).
Include:
all debt securities issued with a residual term to maturity of 12 months or less. Other debt securities with a residual maturity greater than 12 months should be reported as ‘long-term debt’.
5.3.1 Short-term loans: Variable
Report all borrowings by the reporting entity in the form of variable interest rate short-term loans from counterparties.
A loan is considered to be short-term if its residual term to maturity is of 12 months or less.
Amounts due to clearing houses should be separately identified and reported as ‘Due to clearing houses’. Settlement account balances should be separately identified and reported as ‘Due to financial institutions’.
5.3.2 Short-term loans: Fixed
Report all borrowings by the reporting entity in the form of fixed interest rate short-term loans from counterparties.
A loan is considered to be short-term if its residual term to maturity is of 12 months or less.
Amounts due to clearing houses should be separately identified and reported as ‘Due to clearing houses’. Settlement account balances should be separately identified and reported as ‘Due to financial institutions’.
5.4 Total other borrowings
Sum the component parts listed under ‘Other borrowings’.
6. Income tax liability
Recognition of current and deferred tax liabilities are to be made in accordance with AASB 112. In addition, this should relate to Australian business operations.
6.3 Total income tax liability
Sum the income tax liability items relating to Australian business operations.
7. Provisions
7.1 Dividends
A provision for dividends is the allowance that the reporting entity has made in terms of the obligation for declared dividends.
7.2 Employee entitlements
Include:
provisions for long service leave, annual leave, staff housing loan benefits, health fund subsidy and other employee entitlements. This should be reported in accordance with the requirements of AASB 119.
7.3 Non-lending losses
Include:
provision for self insurance;
frauds;
litigation, fraud detection and prevention;
forgeries; and
non-transferred insurance risks.
7.4 Mortgage insurance claims and unearned premiums
7.5 Restructuring costs
Report all provisions raised for the restructuring of an organization.
Include:
severance, termination and redundancy payments; and
integration costs.
7.6 Other provisions
Report all other provisions not identified above.
Include:
specific provision for off-balance sheet credit related commitments;
leased premises surplus to current requirements; and
provision for subsidiary integration costs.
7.7 Total provisions
Sum all the ‘provisions’ reporting items.
8. General Insurance Outstanding Claims and Unearned Premium Liability
9. Life Insurance Policy Liabilities
10. Unvested Policy Holder Benefits
11. Bonds, notes and long-term borrowings
Bonds, notes and long-term borrowings have a residual term to maturity of more than one year. This includes loans and debt securities.
11.1 Debt securities
Report debt securities that have been issued in Australia and have a residual term to maturity of more than one year. Measurement is to be consistent with Australian accounting standards.
As a guide include:
bonds;
debentures;
unsecured notes;
fixed-interest securities;
MTNs;
inflation-indexed bonds;
FRNs;
other floating-rate debt securities;
asset-backed bonds;
non-participating preference shares (a special type where the holder has no entitlement to a share in the residual value on dissolution of the issuing company);
subordinated bonds and notes;
Euro notes;
Euro bonds; and
Euro medium-term notes.
As a guide exclude:
hybrid securities;
trading derivatives;
convertible notes prior to conversion;
negotiable and transferable certificates of deposit;
subordinated debt issues with a residual maturity of 12 months or less;
promissory notes with a residual maturity of 12 months or less; and
commercial paper with a residual maturity of 12 months or less.
11.2 Loans
Report the face value of all loans and borrowings from Australian residents that have a residual term to maturity of more than one year.
Include:
secured and unsecured borrowings;
financial lease agreements;
term loans;
mortgages;
commercial loans;
equity participation in leveraged leases;
redeemable preference share finance; and
loans due to related parties that are resident entities.
Exclude:
loan capital (e.g. subordinated loans);
short-term loans due to related parties that are resident entities; and
treasury related short-term borrowings from other banks.
11.2.1 Loans – Variable rate
Report the face value of all variable interest rate loans and borrowings from Australian residents that have a residual term to maturity of more than one year.
11.2.2 Loans – Fixed rate
Report the face value of all fixed interest rate loans and borrowings from Australian residents that have a residual term to maturity of more than one year.
11.3 Total bonds, notes and long-term borrowings
Sum the total face value of all ‘Bonds, notes and long-term borrowings’ issued or raised in Australia.
12. Creditors and other liabilities
12.1 – 12.2 Defined benefit liabilities
Include:
defined benefit liabilities i.e. deficit broken up into current and non-current, consistent with the classification and measurement basis used in AASB 119.
Distinctions between current and non-current defined benefit liabilities are to be made in accordance with AASB 101 Presentation of Financial Statements (AASB 101).
12.3 Interest payable
Include:
interest accrued for but not yet paid.
12.4 Unearned interest
Include:
interest received but not yet earned e.g. interest received in advance on fixed interest loan portfolio.
12.5 Amounts payable to clients - Outstanding security settlements
For those institutions that have broking activity with clients who are other than financial institutions, record the amount due to clients in relation to security settlement transactions. Do not include amounts payable to financial institutions or clearing houses in relation to security settlements, as these are to be recorded in a separate liability heading ‘Due to Financial Institutions’ and ‘Due to Clearing Houses’.
12.6 Derivative financial instruments
Include:
all derivatives entered into after adoption of IFRS consistent with the classification and measurement basis used for derivatives by institutions in accordance with AASB 132, AASB 7 and AASB 9. This applies to trading and banking book derivatives. Derivative financial instruments in existence prior to adoption of IFRS are to be reported in accordance with AASB 1.
12.7 Items in suspense
Report suspense or unreconciled/unidentified transactions/balances here that are in a liability position. A list of examples is not provided as these may vary between institutions. It is recommended that the institutions internal procedures be adopted regarding the recording and reporting of these types of balances.
12.8 Due to merchants
12.9 Liabilities included in disposal groups classified as held for sale
Include:
liabilities included in disposal groups classified as held for sale consistent with AASB 5 (paragraph 38).
12.10 Share capital repayable on demand
Applicable to Credit Unions and Building Societies, this includes members’ shares in co-operatives classified as liabilities consistent with AASB 132 and AASB 7.
12.11 Other
Include:
other liabilities not separately identified above e.g. unearned fees and commission received in advance but not recognised as earned for accounting purposes.
12.12 Total creditors and other liabilities
Sum the reporting items listed under ‘Creditors and other liabilities’.
13. Loan capital and hybrid securities
Report the face value of all loan capital and hybrid securities that have been issued in Australia and have a residual term to maturity of more than one year.
Classification is to be consistent with AASB 132 and AASB 7.
As a guide include:
preference shares;
convertible notes; and
subordinated loans of a residual maturity of more than one year.
13.1 Members withdrawable shares
Include the value of ADI member withdrawable shares. This item should be prepared in accordance with the APRA prudential treatment and not applicable accounting standards. For prudential purposes, an ADI member share is classified as a liability and is not capital. In the event of redemption, the liability would be reduced by the issue value of shares redeemed.
13.2 Loan capital
As a guide include:
subordinated loans of a residual maturity of more than one year.
13.3 Hybrid securities
As a guide include:
converting preference shares; and
convertible notes.
13.4 Total loan capital and hybrid securities
Total all ‘Loan capital and hybrid securities’ items listed above.
14. Total liabilities
Sum total liabilities.
14.1 Of which: Due to associated entities/joint ventures
15. Net Assets
Calculated as ‘Total assets’ less ‘Total liabilities’.
Section C: Shareholders’ equity
1. Share capital
1.1 Ordinary shares
Include:
ordinary share capital on issue.
1.2 Preference shares
Preference shares have a priority over dividend payments and to the assets of the reporting company.
1.3 Other
Include:
any other form of share capital not included above (e.g. income securities).
1.4 Total share capital
2. Reserves
2.1 General reserve
This is derived from revenue profits and is mostly available for dividend payment.
Exclude:
from General Reserve any portion of General Reserve for Credit Losses that forms part of Shareholders’ Equity. These excluded amounts are to be recorded in the General Reserve for Credit Losses column in the assets section of this form.
2.2 Capital profits reserve
Capital profits reserve represents the realised value of revaluations associated with an asset or class of assets that have been disposed of. These assets have been subject to the fair value basis of measurement and revaluations accounted for in accordance with accounting standard AASB 116. Due to the disposal of these assets, the balance of the asset revaluation reserve (ARR) associated with these assets has been transferred to a capital profits reserve.
2.3 Asset revaluation reserve
2.3.1 Owner-occupied property
Include:
ARR relating to the revaluation of owner-occupied property.
2.3.2 Plant and equipment
Include:
balance of the ARR relating to the revaluation of property, plant and equipment.
2.3.3 Investments in associates/share of associates
Include:
the balance of the ARR relating to the revaluation of investments in associates
2.3.4 Intangibles revaluation surplus
Include:
balance of the ARR relating to the revaluation of intangible assets.
2.3.5 Relating to non-current assets or disposal groups held for sale
Include:
the balance of the ARR relating to revaluation of non-current assets or disposal groups held for sale in accordance with AASB 5.
2.3.6 Other
ARR relating to the revaluation of other assets.
2.3.7 Total asset revaluation reserve
Sum the reporting items listed under ‘Asset revaluation reserve’.
2.4 Foreign currency translation reserve
Include:
the exchange rate differences arising on translation of assets and liabilities in accordance with AASB 121.
2.5 Fair Value Through OCI Reserve
2.5.1 Marketable securities
Include:
Fair value through OCI reserve for all marketable securities (debt and equity) consistent with the classification and measurement basis used by institutions in accordance with AASB 130 and AASB 7.
2.5.2 Other
Include:
Fair value through OCI reserve for loans and advances and all other items not separately identified above, consistent with the classification and measurement basis used in AASB 9, AASB 132 and AASB 7.
2.6 Cash flow hedge reserve
Include:
the effective portion of the gain or loss on the cash flow hedging instrument as required by AASB 9, AASB 132 and AASB 7.
2.7 Share based payments reserve
Include:
the equity settled share based payments reserve amounts as required by AASB 2 Share based Payments (AASB 2).
2.8 Other reserves
Include:
all reserves not separately identified above. Report dividend reinvestment plan reserve in this reporting item.
2.9 Total reserves
Sum the reporting items listed under ‘Reserves’.
3. Retained profits
4. Shareholders’ Equity attributable to Shareholders of the Company